A Tauranga teacher who twice paid $120 to a teenager so he could watch him have sex with his 16-year-old girlfriend has been stood down from teaching.

Andrew Loader, 49, has been suspended for two months pending a disciplinary hearing, the Teachers Council said yesterday.

The principal of the school at which he taught said he no longer worked there. The school's name has been suppressed.

Loader pleaded guilty in Tauranga District Court yesterday to a charge under the Prostitution Reform Act. A charge of paying a 16-year-old for sexual services was withdrawn and replaced with one of contract sex involving a person under 18, Tauranga news site Sunlive reported.

According to the police summary of facts, the man chatted to an 18-year-old youth on Facebook and arranged for him and his girlfriend to have sex at his house last November. They turned up at Loader's home and had sex on the bed in front of him, police said.

While they had sex, the man moved around the room watching, masturbating at the same time.

The three of them then drove to a cash machine where the teacher paid them $120. One week later, the act was repeated and the teenager was paid another $120.

Loader was remanded on bail for sentencing on March 15.

The principal of the school where the man had worked said no student was put at risk. The school board had promptly dealt with allegations, which were referred to the Teachers Council and police, he said.